Buckle up for turbulence ahead: World Bank, IIF

Tokyo

EMERGING and "frontier" market economies in Asia and elsewhere need to "buckle their seatbelts in case the ride gets bumpy" during the upcoming monetary tightening cycle, the World Bank said on the eve of a critical meeting of the US Federal Reserve.

The report warned of the danger of a possible "perfect storm" hitting these markets, echoing a recent similar warning from the Institute of International Finance (IIF) in Washington.

Meanwhile, in a separate report issued on Wednesday, the IIF said that regardless of what the Fed does this week, "market uncertainty and volatility" is inevitable in the period ahead.

The two documents appeared as the Fed prepares for a meeting this week at which it will make a highly mark…